USD-CHF @ 1.1570/74... Pressured lower ----------------------------------------- R: 1.1650 / 1.1700-50 / 1.1825 S: 1.1500 / 1.1300 / 1.1300 / 1.1100 Amidst the mayhem seen during the day, Swissy is the only pair that has been relatively stable. The pair has slipped lower after facing Resistance on a rise towards 1.1750 during the day. Most part of the day saw the pair being pressured lower due to the carry unwinding seen on USD-JPY as well.
Support at 1.15 has held today. Below this is 1.13, 1.10 which could get tested soon. An unlikely rise above 1.17 will bring 1.20 into the picture once again.
GBP-USD @ 1.5666/72... UK GDP QoQ ----------------------------------- R: 1.58 / 1.60 / 1.65 S: 1.52 / 1.50 / 1.46-45 UK GDP released at -0.5% against an expectation of –0.2%, first contraction in the UK since 1992. This has resulted in a crash in the pair that has brought Cable to test 1.5265 on the downside. A subsequent bounce resulted in the pair rising back above 1.56. These levels were last seen during September-2002.
The stocks in Europe are badly beaten, once again this morning. The Dow futures have fallen to hit a circuit as well.
Where to from here?? There is some Support now seen at 1.46. However, it is difficult to say the time frame within which the target will be met. Could be this month, could be before Christmas. There is some Support before that at 1.52-50, which could slow the freefall.
AUD-USD @ 0.6144/48... Big Crash --------------------------------- R: 0.6200-50 / 0.6400 / 0.6500 S: 0.6050 / 0.6000-0.5973 / 0.5900 Aussie has seen a big crash after selling pressure from Yen and Cable. A low of 0.6050 was seen during the European session.
From here, there could be some Support at 0.5973, which happens to be the 76.4% retracement of the rise from 0.4775 (Apr-01) to 0.9851 (Jul-08). However, the markets are in a freefall and readers are advised to stay away from taking long positions despite the Supports in the region being longer term Supports.
Holding: Short 10K AUD at 0.6255, SL 0.6245 (from Open earlier), TP 0.5500 (from 0.60 earlier)
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